The South African Institute of Chartered Accountants Circular 1/2001

CONTINUING PROFESSIONAL EDUCATION:

COMPETENCE SELF-APPRAISAL

Circular 1/2000 on Monitored Compulsory Continuing Professional .01

Education was issued in April 2000. In terms of this circular, all
members and associates are required to sign an annual declaration that
they are committed to continuing their professional education and to
remain competent and relevant in the field in which they work.

Previous circulars dealing with Continuing Professional Education .02

(CPE), linked CPE to the attendance of learning programmes.
SAICA’s Board believes that mere attendance of learning programmes
is not an indication that learning has taken place or that the required
level of competence has been maintained.

Competence self-appraisal
In order to assist members and associates to determine whether they .03
are maintaining their technical competence the Competence Self-
Appraisal forms in the Appendices to this circular may be used. The
forms can be found at http://www.saica.co.za/library/main-cpe-
backchat.htm

Competence self-appraisal is a method whereby members and .04

associates assess their own levels of knowledge and ability in those
areas that are relevant to them in carrying out their professional
activities. This enables them to identify those areas where their
professional knowledge or ability is below an acceptable level and in
respect of which corrective action needs to be taken. The Board
believes that the members and associates are themselves in the best
position to assess their own needs, particularly those who are involved
in specialist areas.

Members and associates should first identify those areas of .05

professional competence that are relevant to the carrying out of their
professional activities. Having done this members and associates
assess, as objectively as possible, their own levels of knowledge and
ability in each of the relevant areas. Where competence levels are
assessed to be below acceptable levels, the Board strongly urges

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 CIRCULAR 1/2001 CONTINUING PROFESSIONAL EDUCATION

members and associates to take corrective action to improve their

competence.
.06
To facilitate this process this circular includes Appendices (Appendix A
to Appendix F) designed to assist members and associates in the
evaluation of their own competence levels. This is in response to a
request from the SAICA members and associates.

Completion of the competence assessment form

.07 It is recommended that all members and associates should complete a
competence assessment form, irrespective of their fields of activity.
Appendix A to Appendix F include topics that are likely to be relevant
to most members and associates. The appendices should not be
considered to be an exhaustive list of topics relevant to all members
and associates. There are likely to be other topics that are specific to
the needs of particular members or associates, which would vary
according to factors such as the nature of the work carried out and the
industry in which the company or client is involved. The blank forms
provided as Appendix G can be used as a work-paper on which to list
other topics that are of particular relevance to the member or associate
concerned. http://www.saica.co.za/library/main-cpe-backchat.htm

Topics
.08 The first column is used to list the topics. Where members and
associates list additional topics that are of relevance to them, they
should be specific.

.09 The second column indicates a reference to the topic in the Statements
of Generally Accepted Accounting Practice, the South African Auditing
Standards or in the Income Tax Act.

Relevance to activity area

.10 The third column of the form provides users with space to indicate the
degree of relevance of each topic to their field of activity. Topics
should be rated as being high, medium, low or none.

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Level of competence
In the fourth column of the form, users are asked to assess their .11
competence in the particular topic. Competence should be rated as
being high, medium, low or none.

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 CONTINUING PROFESSIONAL EDUCATION CIRCULAR 1/2001

.12 A high level of competence means that the member or associate knows
the principles and the main points of the topic and is confident of
being able to apply them in practice.

.13 A medium level of competence means that the member is aware of the
principles and main points of a particular topic.

.14 A low level of competence means that the member is aware of the
relevant requirements or techniques of a particular topic, and broadly
what they cover.

Adequacy of competence
.15 The fifth column of the form is used to assess whether or not the
member’s level of competence is adequate. If a topic has a high
relevance to the user’s field of work, he/she would normally need a
high level of competence. Similarly, if a member rated a topic as of
medium relevance, then his/her competence level should be at least
medium.

Action
.16 For all items in which a “no” has been recorded in the fifth column,
some action will be required to improve the competence level.

.17 Examples of actions which a member or associate may take to improve

their competence are:
• Attending training courses or seminars provided by the Institute.
• Attending courses or seminars provided by other institutions.
• Reading books and journals on the relevant topics.
• Attending discussion group meetings provided by the regional
associations.
• Seeking advice from colleagues.
• Researching and writing articles on the topic.
• Working on projects with other competent professionals.

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If a member or associate is unsure of how to improve his/her .18

competence in a particular area, he/she should contact the Secretariat
for advice.

The Board strongly urges members and associates to take the .19
necessary steps to attain the required levels of competence.

Conclusion
The Board believes that the recommendations it is making regarding .20
CPE are in the best interests of members and associates and of the
profession as a whole. I believe that if the chartered accountancy
profession is to maintain its reputation for highly skilled service it is
essential that members and associates should continue their education
throughout their working lives.

Johannesburg I Sehoole
March 2001 Executive President

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